Directors & Officers Liability (D&O)

Regardless of your company or organization’s size, the legal cost to defend a director or officer can be substantial, and Directors and Officers can be personally liable under the law. Therefore, it is particularly important that the right coverage is in place to help ensure your organization’s Directors and Officers are protected in the event of a lawsuit. Whether you’re a small non-profit society or a for-profit corporation, Collis Insurance Services Group will take the time to understand your organization and find coverages to suit your needs.  D&O coverage is ever changing and varies greatly between insurance companies – in this particular type of coverage – all policies are not created equal!  Therefore it’s exceedingly important to work with a broker that specializes in this type of insurance. Collis Insurance Services offers our many years of experience in working in this coverage, allowing us to deal with leading Insurers who can offer the best coverage and price combination. Types of events that could lead to a claim:

  • Misleading representations
  • Neglect or breach of duty
  • Breach of contract or copyright infringement
  • Unpaid wages
  • “Oppressed” shareholders creditors or employees
  • Unpaid taxes
  • Conflict of interest
  • Improper dividend payments
  • Improper issuance or repurchase of shares
  • Take-over defenses (poison pill)
  • Breached debt covenants
  • Failure to ensure the corporation meets its financial obligations
  • Wrongful Dismissal

Sources of Legal Action Against Directors & Officers

  • Shareholders
  • Employees
  • Governments (Failure to act as stated under a statute. For example, if a statute require directors to file a report or maintain certain records, and these reports and records are not maintained, then the director may be liable for an offence under that statute.

AND/OR Non-compliance of the organization with a statute. For example, directors be liable for mismanagement, financial losses, wrongful dismissal, employee discrimination or failure to re-mediate environmental damage. )

  • Creditors
  • Competitors
  • Regulatory Authorities
  • Derivative action suites
  • Class action suites
  • Other third parties

Directors & Officers coverage can protect the Entity, Management and Directors & Officers Extensions may be purchased to cover Employment Practices Liability, Cyber Liability, Privacy & Security Breach Services, Corporate Brand Protection and Fiduciary Liability.

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